Stock Groups

Evergrande Jumps Even as Its Fate Remains Uncertain By Investing.com

by Mike Robinson

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© Reuters.

By Dhirendra Tripathi

Investing.com – Evergrande stock (HK:) closed 7.6% higher in Hong Kong trading Monday as the Chinese central bank repeated its determination to keep market conditions orderly, although the fate of the debt-laden Chinese real estate developer remained uncertain.

A payment due date on the company’s dollar bond was missed during the week before, which triggered a grace period of 30 days. However, Wednesday is the due date for interest on the 9.5% March 2024 dollars bond. 

This year, shares of the troubled company have fallen 83%.

Evergrande has liabilities of around $305 billion and is scrambling to raise funds to service them. The parent group’s troubles sabotaged a planned share sale by the group’s electric car unit on Monday: shares in China Evergrande New Energy Vehicle Group crashed 26% after it warned of an uncertain future unless it got a swift injection of cash.

Shares of another Chinese developer, Sunac China Holdings (HK:), closed 8.5% lower in Hong Kong after it sought “special policy support” from authorities in eastern Shaoxing because operations in the city have become difficult.  

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